Small Satellite Market for North America 2020-2025 Forecast
The North America Small Satellite Market is anticipated to grow at a CAGR of over 3% during over the next five years, according to a new report from MarkestandMarkets.
With the advent of technology, the nature of battles has changed drastically. For various military requirements, including communication, the defense agencies around the globe require space capability to meet the demand for more operationally responsive forces. Nano and microsatellites can provide high visibility against tactical enemy operations. Rapid access to near-real-time information and imagery can be helpful for the aerial reconnaissance augmentation process. The nano and microsatellites can also be readily deployed in times of crisis to fill the missing gap for military operations.
The demand for satellite networks and services for commercial applications has increased. The entry of companies, such as Google and Facebook, with commercial services demanding satellite bandwidth and networks has also aided the market. To meet the growing demand for commercial applications, hundreds of new satellites need to be launched. Also, the regulatory relaxation on the sale of high-resolution satellite images for commercial purposes is one of such measures that has provided a new opportunity for the growth of the market.
However, in the recent wake of COVID-19, the current outlook for the satellite industry in North America remains uncertain at this point as the outbreak has caused unforeseen disruptions in the region for both satellite manufacturers and launch service providers.
The small satellite industry in the US is bolstered by the presence of a robust framework for designing and manufacturing small satellites custom-designed to serve specific application profiles. Thus, several small satellites are launched by the US-based operators each year for satiating the demand for such satellites for a plethora of applications. For instance, besides earth observation and communication, several small satellite programs are aimed towards normal matter surveying of galaxies, planets, and stars. On this note, in July 2018, NASA launched the HaloSat to map the distribution of hot gas in the Milky Way galaxy. The HaloSat is built by Blue Canyon Technologies Inc. and is based on their XB1 bus and the L3 Cadet radio. The payload consists of three XR-100SDD silicon drift detectors (SDDs), X-ray collimator, anti-coincidence shield, and associated electronics. The diversified application portfolio is expected to create additional demand for small satellites in the US during the forecast period to replace the conventional full-scale satellites as small satellites offer better performance to cost ratio.
Though the North America small satellite market is characterized by the presence of several players, the market is dominated by only a few players owing to their huge product offering. Since traditional satellite manufacturers are not the sole investors of the market in focus, a radical change in the market dynamics is anticipated to emerge. Hence, to retain their competitive edge, some satellite ventures have plans to manufacture space systems, payloads, or subsystems and components inhouse. For instance, in April 2019, OneWeb Satellites, a JV startup formed via the technological support from Airbus, announced its plans to build most of its 900 satellites inhouse at a new facility in Florida, the US. Also, major technological shifts such as miniaturization, and the advent of reusable satellite launch vehicle systems would necessitate subsequent adaptation for seizing emerging market opportunities. Moreover, owing to the long R&D period associated with the satellite industry, some companies are exposed to certain risks associated with design responsibility, the development of new production tools, more capital and funding commitments, delivery schedules, and unique contractual requirements. These risks, if not resolved swiftly, can affect the financial status of the market players and expose them to revenue fluctuations.
(Source: MarketsandMarkets news release. Image from file)